Investors often have securities in their portfolios with the goal of maximizing their returns. Through SLB services, they can lend these securities to others in exchange for monthly earnings.
Borrowers, such as short sellers and other market participants, need access to specific securities. They borrow these securities to leverage profit opportunities, execute arbitrage strategies, and implement hedging techniques for a daily fee.
For lenders, all the securities you hold in a margin account at xCube are automatically opted in to participate in the automated SLB. You will receive a credit in your account at the end of each calendar month that your securities were lent during that month. You retain full access to your securities to sell at any time and you retain all the financial benefits, including dividends, while participating in this program.
For borrowers, initiate a short-sell order, and we'll swiftly verify the security's availability from our pool of lenders. Our system facilitates seamless matching of lenders and borrowers, ensuring smooth transaction execution. Borrowers are subject to daily fees, while lenders will receive monthly payments.
SLB stands for Security Lending and Borrowing, a well-established practice in global financial markets where investors lend their securities holdings to others in return for a fee.
It enables short sellers and other market participants to access securities for various purposes.
The benefits for lenders include additional income, retention of all the main benefits of ownership, automated convenience, and the ability to sell the security anytime.
Borrowers gain expanded access to a wide array of stocks and securities for various purposes, such as short selling and hedging, with a streamlined process, and seamless integration for easy portfolio and risk management.
No, you can’t choose to only make certain stocks/ETFs available for lending. When you activate your margin account, all eligible stocks/ETFs in your account become available for lending.
Automatically when you upgrade your account to a margin account, you activate the stock lending feature. You can opt to unsubscribe by sending an email to support@xcube.ae